$AAME

ATLANTIC AMERICAN CORP

CIK:0000008177|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2025	Sep. 30, 2024	Sep. 30, 2025	Sep. 30, 2024
Revenue:
Insurance premiums, net	$ 51,972	$ 43,782	$ 149,031	$ 133,327
Net investment income	2,633	2,477	7,591	7,449
Realized investment gains, net	2	4	18	17
Unrealized gains (losses) on equity securities, net	(848)	(1,746)	2,528	(1,617)
Other income	1	2	7	8
Total revenue	53,760	44,519	159,175	139,184
Benefits and expenses:
Insurance benefits and losses incurred	35,471	30,760	101,031	94,492
Commissions and underwriting expenses	12,955	11,490	37,505	35,740
Interest expense	779	869	2,326	2,591
Other expense	3,786	3,854	12,293	12,170
Total benefits and expenses	52,991	46,973	153,155	144,993
Income (loss) before income taxes	769	(2,454)	6,020	(5,809)
Income tax expense (benefit)	192	(456)	1,325	(1,129)
Net income (loss)	577	(1,998)	4,695	(4,680)
Preferred stock dividends	(100)	(100)	(299)	(299)
Net income (loss) applicable to common shareholders	$ 477	$ (2,098)	$ 4,396	$ (4,979)
Earnings (loss) per common share (basic) (in Dollars per share)	$ 0.02	$ (0.1)	$ 0.22	$ (0.24)
Earnings (loss) per common share (diluted) (in Dollars per share)	$ 0.02	$ (0.1)	$ 0.22	$ (0.24)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2025	Sep. 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 4,695	$ (4,680)
Adjustments to reconcile net income (loss) to net cash provided (used) in operating activities:
Capitalization of acquisition costs, net	(917)	(434)
Realized investment gains, net	(18)	(17)
Unrealized (gains) losses on equity securities	(2,528)	1,617
Losses from equity method investees	391	494
Compensation expense related to share awards	2	9
Benefit for credit losses		(10)
Depreciation and amortization	277	297
Deferred income tax expense (benefit)	464	(1,425)
Increase in receivables, net	(14,693)	(7,289)
Increase in insurance reserves and policyholder funds	24,472	6,460
Increase (decrease) in accounts payable and accrued expenses	2,783	(524)
Other, net	270	689
Net cash provided by (used in) operating activities	15,198	(4,813)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold	13,447	40
Proceeds from investments matured, called or redeemed	13,406	9,963
Investments purchased	(42,301)	(10,916)
Additions to property and equipment	(465)	(126)
Net cash used in investing activities	(15,913)	(1,039)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends on common stock	(407)	(407)
Treasury stock acquired — net employee share-based compensation	(4)	(7)
Proceeds from revolving credit facility, net	0	1,000
Net cash (used in) provided by financing activities	(411)	586
Net decrease in cash and cash equivalents	(1,126)	(5,266)
Cash and cash equivalents at beginning of period	35,570	28,301
Cash and cash equivalents at end of period	34,444	23,035
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	2,342	2,600
Cash paid for income taxes	$ 952	$ 580

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2025	Dec. 31, 2024
ASSETS
Cash and cash equivalents	$ 34,444	$ 35,570
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost: $251,703 and $236,299; no allowance for credit losses)	235,469	212,612
Equity securities, at fair value (cost: $4,943 and $4,939)	10,432	7,900
Other invested assets (cost: $7,946 and $7,946)	6,225	6,616
Policy loans	1,668	1,722
Real estate	38	38
Investment in unconsolidated trusts	1,238	1,238
Total investments	255,070	230,126
Receivables:
Reinsurance (net of allowance for expected credit losses of $43 and $51)	22,694	22,942
Insurance premiums and other (net of allowance for expected credit losses of $209 and $201)	42,399	27,458
Deferred income taxes, net	16,089	18,118
Deferred acquisition costs	45,759	44,842
Other assets	11,856	11,828
Intangibles	2,544	2,544
Total assets	430,855	393,428
Insurance reserves and policyholder funds:
Future policy benefits	103,159	98,464
Unearned premiums	36,869	31,178
Losses and claims	107,713	93,707
Other policy liabilities	1,837	1,757
Total insurance reserves and policyholder funds	249,578	225,106
Accounts payable and accrued expenses	34,030	30,948
Revolving credit facility	4,021	4,023
Junior subordinated debenture obligations, net	33,738	33,738
Total liabilities	321,367	293,815
Commitments and contingencies (Notes 3 and 12)
Shareholders’ equity:
Preferred stock, $1 par, 4,000,000 shares authorized; Series D preferred, 55,000 shares issued and outstanding; $5,500 redemption value	55	55
Common stock, $1 par, 50,000,000 shares authorized; shares issued: 22,400,894; shares outstanding: 20,397,228 and 20,399,758	22,401	22,401
Additional paid-in capital	57,425	57,425
Retained earnings	49,843	45,854
Accumulated other comprehensive loss	(12,824)	(18,712)
Unearned stock grant compensation	0	(2)
Treasury stock, at cost: 2,003,666 and 2,001,136 shares	(7,412)	(7,408)
Total shareholders’ equity	109,488	99,613
Total liabilities and shareholders’ equity	$ 430,855	$ 393,428